Iwaki reports mixed half-year results, forecasts sales growth

Iwaki Co., Ltd. reported a 0.7% increase in net sales to 22,693 million yen for the first half of FY3/26. However, gross profit decreased by 1.3% to 9,111 million yen, with the gross margin declining to 40.1% due to a higher cost of sales ratio. Operating profit also saw a 1.6% decrease to 2,726 million yen, while ordinary profit increased by 4.1% to 3,231 million yen, driven by higher equity method income and foreign exchange gains. Profit attributable to owners of parent rose by 5.8% to 2,299 million yen.

Sales in the water treatment and chemicals categories were strong, particularly in the United States, contributing to a 7.5% increase for chemicals. The semiconductor/liquid crystal category in Taiwan and South Korea showed strong performance with a 7.2% year-on-year increase in Asia. In China, while the semiconductor/liquid crystal category appears to have bottomed out, a full recovery is expected to take more time.

For the full year FY3/26, Iwaki forecasts net sales of 48,439 million yen, a 5.8% increase year-on-year, and an operating profit of 6,159 million yen, up 5.4%. The company expects ordinary profit to reach 6,601 million yen and profit attributable to owners of parent to be 4,788 million yen, an increase of 7.2%. The dividend policy includes a payout ratio of 35% or more and a minimum dividend of 70 yen from FY3/26 to FY3/28.